Arrium sales process on track, bids coming through: administrator

Image: Luis Ascui/Fairfax

Arrium’s administrators have received about 20 expressions of interest, with non-binding offers coming through over this month and final bids due in December for the collapsed iron ore and steel company.

The Australian reports that most of the enquiries were for parts of the Arrium Australia group – the Moly-Cop business is being sold separately – with the administrator’s “strong preference” to keep the company whole. Morgan Stanley is advising the sale.

However, “quite a few” were for the group, Mark Mentha of administrators KordaMentha.

“The administrators and Arrium management are in the process of preparing the detailed due diligence materials to be made available to bidders that are shortlisted to advance to stage two of the sale process,” KordaMentha said in a statement.

 

The sale was still on track, said the administrators, despite the statewide blackout last week.

Yesterday it was announced that the Whyalla steelworks were back to 80 per cent capacity, with the cost of the storm probably closer to $10 million, down from a previous estimate of $30 million. Full power is expected to be restored next week.